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Address gas crisis–ANAN to FG

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By Abraham Adekunle

A call for strategic investment and government action in gas production.

In a recent development, the Association of National Accountants of Nigeria (ANAN) has strongly urged the Federal Government to ramp up investments in the production of Liquefied Natural Gas (LNG) to address the ongoing revenue crisis in the country. Emphasizing the critical importance of revenue generation, ANAN President James Neminebor highlighted that the focus on crude oil neglects the immense potential of the gas sector, despite Nigeria being richer in gas reserves than crude oil.

Speaking at the 2024 National Budget Workshop in Abuja, organized by the Chartered Institute of Taxation of Nigeria in collaboration with ANAN, Neminebor underscored the global demand for gas and the need for Nigeria to capitalize on its abundant gas resources. He emphasized the underexploited potential of the Nigeria Liquefied Natural Gas company (NLNG), a government-owned entity, as a key player in boosting revenue. Neminebor suggested that increasing the number of NLNG-like ventures would significantly contribute to the nation’s revenue base.

Strategic gas investment is needed to secure Nigeria’s future.

He stated, “If we have four of such, that will give the Federal Government enough revenue. We need more than three of NLNG in Nigeria because gas is by far more available as reserves in this country than crude oil. The Federal Government should, therefore, invest in gas and have a serious hold on it to expand Nigeria’s revenue base.” Backing ANAN’s call for strategic investment, Samuel Agbeluyi, the President of the Chartered Institute of Taxation of Nigeria, stressed the urgency of adequate revenue generation.

Agbeluyi asserted that borrowing money cannot be a sustainable solution and urged political leaders to ensure the prudent utilization of collected funds. To contextualize the urgency of this call for investment, it is essential to consider the statistics presented by the Federal Government in July 2023. According to official reports, Nigeria boasts an impressive 208.83 trillion cubic feet of gas reserves, constituting 33% of Africa’s total gas reserves of 620 trillion cubic feet. This positions Nigeria as a gas-rich nation, ranking first in Africa with a remarkable life index of 94 years for its gas reserves.

Unlocking Nigeria’s gas potential and sustaining growth.

However, despite the vast potential, the gas sector has not received the attention it deserves. The call for increased investment in gas production aligns with the global trend towards cleaner energy sources and the rising demand for natural gas. Nigeria stands at a crossroads where strategic decisions in gas production can not only alleviate the current revenue crisis but also position the country as a major player in the global energy landscape. To fully capitalize on this pivotal moment, policymakers must collaborate with industry experts and stakeholders to formulate a comprehensive roadmap for the gas sector’s development.

Additionally, as regards investing in existing entities like NLNG, the government should explore opportunities to develop new ventures and technologies that harness Nigeria’s abundant gas resources. The diversification of the energy sector will not only contribute to revenue but also enhance energy security and environmental sustainability. Moreover, there is a need for comprehensive policy frameworks that encourages the private sectors participation in the gas industry. A conducive regulatory environment, coupled with incentives for exploration and production, can attract both local and international investors, fostering a robust and competitive gas market.

Related Article: Gas will transform power, industrial sectors

As the world grapples with the transition to cleaner energy, Nigeria has a golden opportunity to leverage its gas wealth for economic growth. The government’s commitment to addressing the gas production crisis should go beyond rhetoric and translate into concrete actions, fostering a resilient and sustainable energy sector that propels the nation towards a prosperous future. It is imperative for political leaders to heed the call of ANAN and institute strategic measures to elevate Nigeria’s gas production to new heights, ensuring a brighter and more sustainable economic outlook for the nation.


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AN-Toni
Editor
1 month ago

Address gas crisis–ANAN to FG.A call for strategic investment and government action in gas production.Express your point of view.

Taiwo
Member
1 month ago

Respond to the gas problem by sending an ANAN to the FG. a request for government intervention and strategic investment in the gas production industry.The situation in the nation’s gas output needs to be addressed by the federal government. We are where we are because of this. Not enough attention is paid to these problems. 

Kazeem1
Member
1 month ago

To address this challenge, government action and strategic investment in gas production are essential. Gas is a valuable resource used in many industries, such as industrial production and power generation.

Adeoye Adegoke
Member
1 month ago

I totally understand the urgency of addressing the gas crisis and the call from ANAN to the FG for strategic investment and government action in gas production. It’s crucial that we prioritize this issue and take proactive steps to ensure a stable and reliable gas supply.
Investing strategically in gas production can have a significant impact on various sectors, including power generation, industries, and even households. A reliable gas supply is essential for economic growth and development, as it supports energy needs and drives industrial activities.
By increasing gas production, we can reduce our dependence on other sources of energy, such as fossil fuels, and promote cleaner and more sustainable alternatives. This not only helps to mitigate environmental impact but also strengthens our energy security.
Government action is vital in creating an enabling environment for investment in gas production. Policies and regulations that support the growth of the gas sector, attract investors, and ensure fair competition can go a long way in addressing the crisis.
Collaboration between the government and relevant stakeholders, such as industry experts and associations like ANAN, is key to formulating effective strategies and implementing them. Together, we can work towards a more stable and sustainable gas supply that benefits the Nigerian people and the economy as a whole.

SarahDiv
Member
1 month ago

ANAN’s call for increased investment in gas production aligns with Nigeria’s vast gas reserves, emphasizing its potential over crude oil. The government should prioritize and explore ventures like NLNG to boost revenue, considering Nigeria’s position as a gas-rich nation. Policymakers must collaborate for a comprehensive gas sector roadmap, encourage private sector participation, and create a conducive regulatory environment. This aligns with global trends favoring cleaner energy and positions Nigeria for sustainable economic growth.